Oppenheimer Thinks Houghton Mifflin’s Stock is Going to RecoverBy Ryan Adsit
In a report released yesterday, Ian Zaffino from Oppenheimer reiterated a Buy rating on Houghton Mifflin (NASDAQ: HMHC). The company’s shares closed yesterday at $11.25, close to its 52-week low of $9.15.
“We are discontinuing research coverage of Houghton Mifflin Harcourt Co., previously rated Outperform. All figures included in this report are up-to-date as of our last comment on HMHC, dated November 3, 2016. The decision to discontinue coverage is unrelated to any awareness on our part of any material change in the fundamental condition of the company. Were we to continue to cover HMHC, we would not necessarily consider changing our rating at this time. Rather, our decision to drop coverage is due to a reallocation of analyst resources.”
According to TipRanks.com, Zaffino is a 5-star analyst with an average return of 6.3% and a 62.1% success rate. Zaffino covers the Services sector, focusing on stocks such as Macquarie Infrastructure Company, Bristow Group Inc, and Scholastic Corp.
Houghton Mifflin has an analyst consensus of Strong Buy, with a price target consensus of $23.
The company has a one year high of $22.01 and a one year low of $9.15. Currently, Houghton Mifflin has an average volume of 834.2K.
Based on the recent corporate insider activity of 58 insiders, corporate insider sentiment is negative on the stock. Most recently, in June 2015, Anchorage Capital Group, L.L.C., a Major Shareholder at HMHC sold 1,327,886 shares for a total of $34,084,637.
Houghton Mifflin Harcourt Co. engages in the provision of pre-K-12 education solutions, delivering content, technology, services, and media. It operates through the Education and Trade Publishing segments. The Education segment provides educational content, services, and technology solutions. Its principal markets includes the K-12 school systems, which purchase core curriculum materials, intervention and supplemental materials, professional development and school turnaround services, and an array of highly regarded assessment products. The Trade Publishing segment develops, markets and sells consumer books in print and digital formats and licenses book rights to other publishers and electronic businesses. The company was founded in 1832 and is headquartered in Boston, MA.